Furniture Arts Company Case Study

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NAME : ANG WAI YING

STUDENT ID : DIA16006

SUBJECT CODE : BAC404 COST ACCOUNTING

ASSIGNMENT TITLE : ANALYSE COST INFORMATION WITHIN A BUSINESS

LECTURER NAME : MS JACQUELYN NGU

Company name: Furniture Arts

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Furniture Arts (M) Sdn. Bhd. was founded in 1984. With over 23 year in furniture retailing business, we have 4 branches that are located within 10 km locus.  During its opening Perai was just only a small satellite town in Province Wellesley which was a free trade zone. The company managed to grow throughout the years and able to be the biggest furniture showroom in Seberang Perai with the opening of its fourth branch in Megamall in 1998. Apart of this, we do have a mattress centre that sell high end mattress in Megamall Pinang. Currently it had about an average of 47 employees and an estimate of over few hundred thousand of customers based with a repeat of purchase.

The core operation of this company is furniture retailing. The company sells various kind of furniture ranging from sofas to mattresses as well as other small home accessories. We are the sole distributor for several furniture manufacturers which enable to us to provide goods superior quality, value and service to the customer. Apart from retailing, we also provide customers with superior interior designing services, which started in 1988. This division concentrates on the interior designing sector, special made products and contract works. This includes interior design work, home renovation and exterior renovation. We started with only one designer and at current the company had 3 designers. We serve both organisation consumer (factory, gorverment body and etc) and individual consumer. Now with more than 23 years of experience, the company has become a well-established one-stop furniture centre supplying the most thorough variety of high quality products and services at affordable prices.

Task 1 (a)

Direct cost is a cost that can be traced in full to saleable cost units (product and services) that are being costed. Direct cost may also include direct material, direct labour and direct expenses.

First of all, direct material is the main raw material that go into the product. The cost of a direct material should not be immaterial and can include finished goods, part-finished goods and packing materials. The example for direct material of my company furniture arts is timber, steel legs, hammer and etc.